Blockchain – All you need to know about Blockchain & Bitcoin
Blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.
The technology is primarily used to verify transactions, within digital currencies. It is possible to digitize, code and insert practically any document into the blockchain. Doing so creates an indelible record that cannot be changed; furthermore, the record’s authenticity can be verified by the entire community using the blockchain instead of a single centralized authority.
How Blockchain works?
A network of so-called computing nodes makes up the Blockchain. Let’s read how it works:-
1. A transaction between two parties occur
2.The transaction is then added to the online transaction ledger encrypted with a digital security code.
3. The code is then sent to the large network where the authenticity of the code is confirmed without compromising private information and eliminating the need for a central authority to confirm the transaction.
4. Once the transaction is confirmed and validated by several parties, it exists on the ledger or each other as a permanent and immutable record of the transaction.
5. The transaction information is recorded in a public ledger and the transaction is completed.
Blockchain & Bitcoin
The blockchain is perhaps the main technological innovation of Bitcoin. Bitcoin isn’t regulated by a central authority. Instead, its users dictate and validate transactions when one person pays another for goods or services, eliminating the need for a third party to process or store payments. The completed transaction is publicly recorded into blocks and eventually into the blockchain, where it’s verified and relayed by other Bitcoin users.
Benefits of Blockchain.
The benefits of Blockchain are more than big enough to sustain its relevance for generations to come. Currently, Blockchain is majorly used by finance and banking sector but its going to spread its tentacles of blocks to almost all sectors in future. Let’s have a look at its benefits-
Trustworthy System : Allows the user to verify the transaction without third party interruption.
Transparency : The distributed ledger structure gives the control of all their information and transactions to the users.
Faster Transactions : Blockchain transactions can reduce transaction times to minutes and are processed 24/7.
Reduced transaction costs : Blockchain eliminates third party intermediaries and overhead costs for exchanging assets
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